The Social Security Fairness Act, signed into law in January 2025, has made significant changes to the Social Security system by eliminating the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), two provisions that had unfairly reduced Social Security benefits for millions of public sector workers.
These changes are retroactive to January 2024, meaning many beneficiaries will receive retroactive payments in addition to higher monthly benefits starting in 2026. This article explains the retroactive payments, new monthly amounts, and how these changes will affect Social Security recipients in 2026.
What Is the Social Security Fairness Act?
The Social Security Fairness Act addresses long-standing concerns about WEP and GPO, which reduced or eliminated Social Security benefits for workers who had earned pensions from government jobs or jobs not covered by Social Security.
- WEP reduced the Social Security benefits for workers who had both non-Social Security covered work and Social Security covered work.
- GPO reduced spousal or survivor benefits for individuals who also received a government pension not tied to Social Security.
The Fairness Act repeals both of these provisions, meaning that public sector employees, retirees, and their spouses who were impacted by WEP and GPO will now see full Social Security benefits.
Retroactive Payments: Who Will Receive Them?
The retroactive payments are a crucial part of the Social Security Fairness Act. These payments compensate individuals who were unfairly penalized under WEP and GPO between January 2024 and the implementation of the changes in 2025.
Retroactive payments will cover the difference between what affected individuals had already been receiving and the full amount they should have been receiving.
Who Is Eligible for Retroactive Payments?
The following individuals are eligible for retroactive payments under the Social Security Fairness Act:
- Public sector employees who worked in non-Social Security covered jobs, such as teachers, firefighters, police officers, and state and local government workers.
- Retirees whose Social Security benefits were reduced due to WEP.
- Surviving spouses whose survivor benefits were reduced due to GPO.
How Much Will the Retroactive Payments Be?
The amount of the retroactive payment will depend on the amount of the reduction caused by WEP or GPO. If someone’s benefits were reduced by $400 per month, their retroactive lump sum will cover the difference for every month since January 2024. Some individuals will receive several thousand dollars in one lump sum as compensation.
- Retroactive payments can range from a few hundred dollars to several thousand dollars, depending on the duration of the benefit reductions.
- The SSA processes these payments based on individual circumstances, including prior contributions and pension history.
New Monthly Benefit Amounts in 2026
As part of the Fairness Act, the elimination of WEP and GPO provisions will lead to higher monthly Social Security benefits for affected individuals starting in 2026. Many recipients will see an increase in their monthly payments, ranging from hundreds of dollars to more than $1,000, depending on their individual circumstances.
Example of Monthly Increase
- Before the Fairness Act: $1,850 per month (reduced by WEP)
- After the Fairness Act: $2,190 per month (full benefit without WEP reduction)
- Increase: $340 per month
This increase can make a significant difference in the lives of retirees, disabled workers, and surviving spouses, improving their financial security and helping to keep up with inflation.
Timeline for Receiving Retroactive Payments
The retroactive payments began processing in 2025, with most beneficiaries receiving their one-time lump sum by mid-2025. Those who did not receive the payment should expect to see their retroactive lump sum processed by 2026.
When Should You Expect Your Payments?
- By Mid-2025: Most beneficiaries should have already received their retroactive payments.
- Late 2025/Early 2026: If you have not received a retroactive payment, the SSA will continue processing payments. Expect to receive them by early 2026.
- 2026 and Beyond: Ongoing adjustments to monthly benefits will continue, and you should see your new monthly payment reflected in January 2026.
If you are still waiting for your retroactive payments, the Social Security Administration (SSA) recommends checking your my Social Security account for any updates or contacting the SSA directly.
Challenges and Delays in Retroactive Payments
While the majority of retroactive payments have already been processed, there are still some individuals who may face delays in receiving their payments.
Common Reasons for Delays
- Complex cases: If a beneficiary had multiple periods of non-Social Security covered work or multiple pensions, their case may require more manual review and verification.
- Incorrect records: Some individuals may have had incorrect records or missing data regarding their work history or pension contributions, which could delay processing.
If you haven’t received your retroactive payment, it’s important to contact the SSA to ensure there are no outstanding issues that need to be addressed.
How the Fairness Act Might Influence Future Social Security Reforms
The Social Security Fairness Act represents a major step forward in ensuring equitable treatment for all workers, particularly those in public sector jobs. However, it is possible that the changes introduced by this Act could serve as a model for future Social Security reforms, such as:
- Further simplification of Social Security provisions to remove other inequities.
- A potential expansion of Social Security benefits for workers who face similar challenges in non-covered employment, but are not currently eligible for retroactive payments.
- Increased transparency in how benefits are calculated for workers with mixed histories of covered and non-covered employment.
As the Social Security system continues to evolve, the Fairness Act will likely influence future legislative actions aimed at making the system more inclusive and fair.
Personal Finance Tips for Beneficiaries of the Fairness Act
As retroactive payments and increased monthly benefits begin to reach beneficiaries, it’s important to consider long-term financial planning:
- Budget for the Changes: With retroactive lump sums and higher monthly payments, it’s wise to adjust your budget for the increased income. Consider saving or investing a portion of the lump sum for future expenses.
- Review Tax Implications: Larger monthly benefits and retroactive payments may increase your taxable income, especially if you are already in a higher tax bracket. It’s important to assess whether you need to adjust tax withholding from your benefits.
- Set Up Direct Deposit: If you haven’t already done so, direct deposit is the most efficient way to receive your payments, ensuring they are processed on time and securely.
Related Links
No Formal Job? How Informal Workers Can Still Build Social Security Retirement Credits
Social Security January Payment Schedule – Exact Dates Checks Will Be Sent to Recipients
What to Expect in 2026
The Social Security Fairness Act marks a monumental shift in the way Social Security benefits are calculated for public sector employees and their families. The retroactive payments and increased monthly benefits provide relief to millions who have long struggled with unfair reductions in their retirement benefits.
As we move into 2026, beneficiaries will see higher monthly checks, helping them stay ahead of inflation and other rising costs. By eliminating the WEP and GPO provisions, the Fairness Act ensures that Social Security benefits are more equitable and reflective of the work individuals have done throughout their careers.
For anyone still awaiting retroactive payments or having trouble understanding their new monthly benefit amounts, the SSA offers resources to help clarify any questions and resolve discrepancies. With these changes, Social Security is one step closer to becoming a fairer, more inclusive system for all workers.
